Yahoo! just announced its latest earnings results for Q4 2015 having generated $1.27bn in revenue, beating analyst expectations of $1.19bn, at a net loss of $4.44bn. Mobile drove traffic-driven revenue 23% during 2015, up from 18% in 2014. Following its earnings call, Yahoo announced that it would cut 15% of its workforce.
Yahoo mobile revenue
Yahoo’s mobile revenue results are in stark contrast to those of rivals Google and Facebook. Both companies recently reported Q4 2015 results. Facebook announced that mobile advertising now made up 80% of its total ad revenues, having generated $4.5bn in mobile revenue. Similarly, Google earnings were strongly driven by mobile search results, reporting $19.1bn in total ad revenue.
Facebook ad revenue compared to Yahoo’s
Despite its mobile user base approaching 600m unique visitors, Yahoo is finding it difficult to translate traffic into revenue. Yahoo display ads make up 5.4% of its value and search ads generate 7.2%, according to recent Trefis estimates. Yahoo continues to innovate its mobile advertising platform Gemini, adding services, such as improved targeting features. Yahoo App Publishing now represents 40% of total Gemini revenue, supplying a quarter of total ads on the platform.
For CEO Marissa Mayer, mobile is one of the key areas she plans to grow. She announced plans to double Yahoo’s mobile search efforts, focussing on a simpler and more personalised approach.
It remains to be seen if Yahoo can bounce back to efficiently compete with its competitors.
February 3, 2016